Can you get a mortgage after 50, or does age quietly work against you when applying for finance? A concern Lighthouse Financial hears regularly from people buying later in life or restarting financially.
Michael explains that when it comes to a mortgage after 50, age alone isn’t the issue - it’s how the numbers stack up.
What Banks Actually Look At
So do banks discriminate based on age?
Michael’s answer is clear. Banks aren’t assessing birthdays – they’re assessing risk. In particular, they look at how long someone realistically has to repay the loan and whether repayments are sustainable without putting undue pressure on lifestyle or retirement plans.
A standard 30-year loan often shortens significantly later in life, which increases repayments and tightens servicing. Regulatory requirements also mean lenders must be confident a loan can be repaid reasonably, especially when retirement is approaching.
What If You Plan to Work Longer?
James raises an important point around retirement planning and risk. Even if someone intends to work past 65, there’s always uncertainty around health or employment changes.
Lenders take the type of work into account. Physically demanding roles are often assessed more conservatively, while office-based or professional roles may allow lending to extend further. However, relying on working longer is never risk-free – particularly as income protection cover typically ends at 65.
This is why loan size, structure, and overall affordability matter more as borrowers get older.
Owner-Occupied Homes vs Investment Property After 50
This is where the distinction between owner-occupied homes and investment properties becomes important.
Michael points out that banks treat owner-occupied lending more cautiously later in life. The risk isn’t just financial – no lender wants to be in a position where someone may need to sell their home under pressure in retirement.
Investment properties are assessed differently. There’s often no expectation the debt must be fully repaid by retirement, particularly when the borrower already owns a home with low remaining debt. In these cases, lenders focus more on overall asset values, loan-to-value ratios, and how the downside would be managed if circumstances change.
Exit Strategies and Informed Decisions
One concept Michael returns to is the importance of an exit strategy. If income alone won’t clear the debt within the required timeframe, banks want to understand how the loan would be repaid if circumstances change.
Approval doesn’t automatically mean a decision is right. Prioritising a property purchase later in life can have flow-on effects for lifestyle, cashflow, and retirement – and those trade-offs need to be understood upfront.
As James notes, there’s no single “right” answer – only informed decisions and clear understanding of the implications.
Key takeaways
- Banks assess risk and repayment ability, not age itself
-
Shorter loan terms increase servicing pressure later in life
-
The type of work you do affects how long lenders may extend finance
-
Investment properties are assessed differently from owner-occupied homes
-
Exit strategies are critical when income alone won’t clear the debt
-
Approval doesn’t always mean the option suits long-term goals
Next steps:
If you’re thinking about a mortgage after 50, the Lighthouse Financial team can help you align lending decisions with your broader wealth, retirement, and lifestyle goals.
If you’d like to watch more, check out these other episodes below.
For a no obligation discussion to see how we can help you on the path to wealth, please contact us.
Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
